Nejdet Tiskaoglu, Chairman of the Board of Directors of Elcab Cable Profie Industry Trade Inc:
“Our company which continues its production
activities in a closed area of 7000m2 in its own
production facilities since the year 1998 always looks forward to the future with its young and dynamic team.”
Chairman of the board of directors of Elcab Cable Profile Industry and Trade Inc. Mr. Nejdet Tiskaoglu who said that Elcab Cable is one of the most rapidly growing companies of the cable sector said that there is an infinite number of potential markets to which they could enter and that they make intensive efforts for the purpose of entering those markets. Mr. Tiskaoglu who further stated that they would participate in HOSTEC, the 22th International Fair of equipment and technologies of hotels, restaurants, cafees and pastry shops which shall be organized by TUSID in Istanbul on November 2-5, 2016 for that purpose emphasized that they always look forward to the future with their young and dynamic team. Mr. Tiskaoglu answered our questions.
Could you make a general evaluation of the first period of the year?
When we make a general evaluation of the first period of the year we may say that this period has not been a good period not only for our sector but all sectors and companies as a result of the unreliable commercial and market conditions caused by the political turmoils at the global scale and the instability in the markets, We may say that no noteworthy and significant development could be realized in the positive sense during the current year due to the political problems affecting our country and foreign countries, instability in the markets and fluctuations in the foreign exchange rates and it has been observed that the companies not only in our sector but in all sectors have tried to maintain their existence without realizing any growth or development and further tried to close year with the minimum level of losses.
For that reason we may evaluate this year as a distressfull and inefficient year as a result of the crisis environment caused by the political problems. More generally we may call it a lost year.
When we have a look at the same year from the point of view of Elcab Cable, we may say that we had managed to maintain our existing turnover volume and sale figures and to keep our customer portfolio constant without making any concessions from quality, and that we have even included new customers in our customer portfolio despite the fact that we couldn’t have attained the targets that we had set at the beginning of the year.
Does the cable sector still maintain its attractiveness? Are there new actors who have entered into your sector? Should new actors enter in the sector?
The basic problem of the producers and industrialists which continue their activities not only in the cable sector but in all other sectors, is the concentration of exports only on several markets, failure to attribute sufficient importance to research and development activities and ignorance of potential markets and consequently failure to make any progress in terms of growth and profitability. There is an infinite number of potential markets to which we may enter all over the World. What is first of all to be done in order to enter those markets is to conduct a very detailed and meticulous market survey and participate in the relevant sectoral fairs in order to have access to the target customer mass.
In line with this purpose we shall participate in HOSTEC, the 22nd international fair of equipment and technologies of Hotels, restaurants, cafees, pastry shops which shall be organized by TUSID in Istanbul on November 2-5, 2016. However the achievement of success in these activities depends on the ability to offer to the customers special products different from the standart products, which are available in the markets, within the framework of the cycle of supply and demand.
Why should your company and products be preferred by the customers? What shall the customers who shall prefer your products gain in terms of efficiency, cost etc.?
My personal belief is that in order to realize profitable, high quality and successful Works in the sector, we as the cable sector must carry out its activities under the leadership of strong companies which had developed themselves in terms of corporate structure, background, machine park etc. I would like to underline that this is not an approach that means granting monopoly to a definite group of companies but on the contrary, a requirement for ensuring the progress of the sector and its management in a healthy manner. As Elcab Cable we are the most rapidly growing company of the sector as a company which has been active in the sector for long years. Regarding all the products that we have produced since the day on which we had launched our production activities, it has been our basic policy to meet the demands and needs of our customers at the maximum level, follow up and implement technological developments, engage in a type of production which is sensitive to the environment and society and offer the best service to our customers at the most reasonable price and this customer-based understanding which we have developed under a corporate structure shall enable us to be preferred more intensively and take a step forward against our competitors.
What kind of developments do you envisage in the cable sector for the coming 5-10 years. Which technologies and products shall dominate the sector? Do you carry out any studies regarding this issue?
As I have mentioned above, achievement of success depends on the ability to offer special products to the customers which are different from the standard products already available in the market. This rule is valid not only for the cable sector but also other sectors. We can predict that, in the cable sector, we shall enter different and new markets with different product groups which have been produced based on developed automation systems and state of the art Technologies, that the cycle of supply and demand shall be shaped at the best manner in this way and this development shall add positive values to the producers and industrialist.
Our company which carries out its activities based on an understanding focused on customer satisfaction without making concessions from quality since the day on which it has been founded shall also continue in the same direction in the future and provide good quality products and services to its customers at lower costs, without any error and on time and by optimum use of the resources, increase the education level of its employees and assure permanent progress and development in its production process in this way.
Should cable sector insist on producing low voltage cables which are directed at a general purpose of use and do not require a special know-how or advanced technology?
Product diversity is very important not only for our sector but all sectors since it would ensure customer satisfaction within the framework of the supply & demand relationship. Because the customer satisfaction shall be at a higher level if the cycle of supply&demand is healthy. And in turn, the degree to which the company is demanded and preferred shall increase parallel to the increase in the degree of the customer satisfaction. For that reason the continuation of the low-voltage cables which are directed at general purpose of use and do not require a special know-how or advanced technology is necessary for ensuring product diversity in the sector and preference both at the domestic as well as the global markets.
How long should this cycle last in which there is surplus supply and profitability is at a low level?
Unfortunately we see that generally many companies not only from our sector but from all sectors make concessions from product quality for the purpose of reducing the costs and keeping up with the deadline of delivery of products while increasing their production capacity, or cause unjust price increase as a result of working at inert capacity despite the increase of capacity and the reflection of this situation in the prices. Unfortunately concessions are made from the product quality in order to increase the profit rates and this situation leads to the emergence of low quality products and unfair competition in the markets and distancing from the objective of creating a brand value by ignoring research and development activities. What must be done is to realize good quality production with a high production capacity and provide service to the customers on time by means of effective and efficient marketing strategies. As Elcab Cable we carry out production activities in the light of these strategies. However when we have a look at the future and problems of the sector I would like to make a self-criticism and state that the most basic problem of the cable sector in our country is the fact that the sector has been unable to create a worldwide known brand value despite the fact that it has been founded upon firm foundations. The reason of this situation is the fact that the producers have not attributed enough importance to research and development and innovation activities as a result of the perception caused by the lack of sufficient supervision and the price-focused approach in the markets of our country and consequently we have to face this negative situation. The best solution to which we may have recourse in order to find a solution for these problems is to introduce legal regulations, increase supervision and make investments in research and development and innovation activities. Otherwise it will not be possible for this cycle to continue under circumstances under which competition is tough and profit levels are low.
Is the production of the middle and high voltage cables very hard in technological terms? Or is the market narrow? Why can’t the sector take a step in this regard?
Producers do not atribute importance to research and development and innovation activities as a result of the perception caused by the lack of supervision and the price-focused approach prevailing in the markets and this situation unfortunately leads to the failure to take any steps for the production of different groups of product. The best solution to which we may have recourse in order to solve these problems shall be to introduce legal regulations, increase supervision and make investments for research and development and innovation activities, as I have stated below.